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August 18, 2000
Minority- and Women-owned Community Banks Gain Recognition
The National Bankers Association reports member banks that have received federal community
development financial institution certification.
SocialFunds.com --
Community development financial institutions (CDFIs), including community development banks, credit
unions, and loan funds, are the backbone of community investing that provides capital to
underserved communities. Many CDFIs focus on women or minority clients, so it seems appropriate
that a group of banks owned by women and minorities have gained CDFI certification.
 The National Bankers Association (NBA),
the trade group for minority- and women-owned banks in the U.S., announced this month that 15 of
its member institutions have received certification by the Treasury Department's CDFI Fund. Their
CDFI certification allows NBA member institutions to receive some federal funds and deposits from
other institutions interested in making investments with verified community impact.
"More
certified CDFIs certainly will mean increased competition for the scarce resources of the CDFI
Fund," said Cheryl Neas, Senior Associate at the CDFI Coalition, a Philadelphia-based organization
promoting public and financial support for the CDFI industry. "Of course, this also means that more
underserved communities and more low-wealth people and places have access to the financial and
capital services that CDFIs provide."
The CDFI Fund was created by Congress in 1994 to
expand the availability of credit, investment capital, and financial services to underserved urban
and rural communities. Since the Fund's founding, it has made more than $300 million in awards to
CDFIs, and leveraged hundreds of millions more from banks, foundations, and other funding sources,
stimulating the creation and expansion of community investment venues.
After a rigorous
application process, CDFI certification is granted to organizations that have successfully
demonstrated a strong commitment to promoting community development and economic growth in
underserved markets. The certification of NBA banks across the country recognizes their consistent
service and economic empowerment of these target markets.
Some of the banks announced by
NBA have been certified for some time, such as Bank of Cherokee County, Oklahoma, Douglass National
Bank, Kansas City, Boston Bank of Commerce, and United Bank of Philadelphia. Others, such as
International Bank of Commerce, in Brownsville, Texas, and Mutual Bank, in Harvey, Illinois,
represent relatively new certifications.
The National Community Investment Fund (NCIF), a
Chicago-based CDFI intermediary with $20 million in assets, led an outreach and education effort to
help minority-owned banks like those above pursue and achieve CDFI Fund certification. The NCIF
reinvests institutional capital into other CDFIs to increase their number and capacity, greatly
accelerating the growth of community economic resources.
The National Bankers Association
has served the nation's minority communities for the past 73 years, creating new homeowners, new
business owners, and new community growth through financial services. The certification of NBA
member banks serves as a powerful reminder of how far minority financial services have come in
those years.
"We are pleased that the U.S. Treasury Department has recognized the need to
strengthen the economic vitality of the nation's communities," said Norma Hart, president of the
National Bankers Association. "With CDFI status, NBA member banks will be better able to provide
more economic opportunities to the residents and businesses located in the neighborhoods we serve."
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